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Home / Can tampons be given tax-exempt status without state approval?> Check the facts

Can tampons be given tax-exempt status without state approval?> Check the facts

In addition, for the purpose of sub-section 38-47(1) of the GST Act, for the goods in the Minister’s determination to be GST-free, they must under the Therapeutic Goods Act 1989 be required to be included in the Australian Register of Therapeutic Goods, or be goods in a class of goods required to be in the Australian Register of Therapeutic Goods.

Schedule 3 of the GST Act exempts 158 items from the GST. Item 18 specifically excludes women’s sanitary items from the scope of the exemption under Subsection 38-45, so a Minister’s Determination under 38-47 would need to be coupled with a change to this exclusion.

The question, then, is whether a change to make tampons GST-exempt constitutes a change to the GST base, which requires state approval, or whether making tampons GST-exempt simply corrects a misclassification. Tampons are classed as goods required to be in the Australian Register of Therapeutic Goods under Therapeutic Goods Order No. 82 – Standard for Tampons-Menstrual (TGO 82), which requires all menstrual tampons supplied in Australia comply with the standards as set out in the order.

This means that the prevailing Minister for Health – in this case, Sussan Ley – has the authority to register a health good as GST-exempt, so long that it is also required to be included in the Australian Register of Therapeautic Goods (ARTG) (or be goods in a class required to be registered on the ARTG). As TGO 82 commenced on 6 March 2009, and came into full force in 2011, all tampons sold today must be registered on the ARTG.

This means that the Health Minister has the authority to exempt tampons from the GST, because in order to be “goods the supply of which is GST-free”, tampons must “be required to be included in the Australian Register of Therapeutic Goods”, a criteria they fulfill.

The findings

The Health Minister can exempt tampons from the GST, just as previous Health Ministers have done by exempting items such as condoms, sunscreens, lubricants, and nicotine chewing gum. There is no formal requirement for the states to provide unanimous support for the process. The exemption can be granted through the Federal Parliament. Administrative action is restrained by Section 38-45 of the GST Act, but Section 38-47 has historically been used to provide GST exemptions to health products.

4 Responses

No I don’t think the state need consultation. Menstruation products are a necessity and should not be taxed. This shouldn’t even be a debatable issue, the oversight should be corrected.

PeterJune 8, 2015 at 10:18 pm ·

I agree entirely but no sensible federal government would change anything to do with the GST without consulting the states.

Craig MarriottJune 3, 2015 at 2:23 am ·

The answer is far simpler. The GST comes from an act of Federal Parliament. An act of Federal Parliament can only be changed by Federal Parliament and NOT state parliaments, or state politicians, no matter what is written in the act. Federal Parliament can change the GST laws today to change the rates, or do whatever it wants. It does not matter what the states want.

Why

Between elections governments are held to account through debate. This debate takes place in the parliament, media, in workplaces, at BBQs and parties, around the kitchen table and online.Politicians, pundits and interest groups attempt to influence the debate and persuade us which side of the debate to take.

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Should the Australian government encourage renewable forms of energy or do we need to support fossil fuels? Is returning the budget back to surplus the number one priority and if so should be decrease spending or increase revenue? Should we focus on industrial relations or indigenous recognition?

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There are, of course, no right answers to such questions. But to use the complexity of a policy issue to cloud debate with half-truths and misrepresentation of the facts to win the debate undermines the democratic accountability of government.

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The media plays an important role in presenting an even handed account of the debate and ensuring a range of voices are heard. In turn politicians are keen to influence the debate through the media's reporting. Undue influence risks silencing some voices from the debate.
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